The Netherlands is a geographically small (approximately the size of Connecticut and Massachusetts combined), densely populated (18.1 million people) country occupying a highly strategic commercial location. Over 170 million consumers (more than one-third of the population of the European Union) reside within a 300-mile radius of the Netherlands. The country is a key center within the global business network, with advanced infrastructure geared towards the transportation of goods, people, and data. Its core distribution points include Rotterdam, Europe’s largest port by cargo tonnage, and Amsterdam Schiphol Airport, the fourth largest airport in Europe for cargo and passengers.
The country has capitalized on its location and advanced economy to become one of the top trading nations in the world. The Netherlands is the 18th largest economy in the world and the 5th largest in the European Monetary Union (the Eurozone), with a gross domestic product (GDP) of 1.27 trillion in 2024. The United States and the Netherlands have a strong bilateral relationship, based on close historical, cultural, and commercial ties. The relationship dates back to the American Revolution and is one of the United States’ oldest, continuous bilateral relationships. The United States is the largest foreign investor in the Netherlands; in 2024 the United States had a trade surplus of $73 billion with the Netherlands, making it one of the largest U.S. trade surpluses with any country.
The Netherlands consistently ranks highly on various international indexes. The 2024 IMD Competitive Index ranked the Netherlands as the 9th most competitive economy in the world. The Netherlands’ high ranking is attributed to its outstanding performance in areas conducive to innovation and sustainable prosperity, driven by investments in innovation infrastructure, access to talent, a competitive labor market, and a robust financial network, along with strong international trade links. The Netherlands also ranked 8th in the 2024 Global Innovation Index from the World Intellectual Property Organization, 6th in the 2024 United Nations’ World Happiness Report, and 1st in the 2023 Education First English Proficiency Index.
Top five reasons U.S. companies should consider exporting to the Netherlands:
- Strategic European Launchpad: The Netherlands serves as an ideal starting point for companies new to exporting, particularly those seeking their first distributor in Europe.
- Affluent, U.S.-Friendly Market: The Dutch population is affluent and has a strong affinity for U.S. products, combined with the highest level of English fluency in Europe. The local culture is receptive to international business practices, facilitating smoother market entry and establishment.
- Innovative Business Environment: The Netherlands boasts a dynamic business community actively seeking new, high-quality products. It ranks highly in innovation and technology adoption, placing a strong emphasis on research and development.
- Advanced Logistics and Distribution Network: With the most sophisticated logistics and distribution infrastructure in Europe, the Netherlands allows for efficient supply chain management and product delivery.
- Strong European Connectivity: The country maintains robust links to other European markets and beyond, enhancing opportunities for trade and collaboration.
The Dutch economy is forecast to grow by 1.3% in 2025, and by 1.2% in 2026, reflecting a steady but moderate recovery from recent economic challenges. This growth is primarily driven by increased private consumption, supported by rising real wages, easing inflation, and favorable financial conditions. Public investment and gradually improving business confidence are also expected to contribute to economic momentum. While the Netherlands’ growth rates are modest, they align with the broader European trend of moderate recovery. With about 5% of total Dutch goods exports going to the United States, the negative impact of potential tariffs from trading partners on GDP growth and total trade is projected to be relatively small.
Inflation in the Netherlands is projected to decline steadily, from around 3.2% in 2024 to 3.0% in 2025 and 2.0% in 2026, according to EU estimates. Despite this improvement, inflation is expected to remain slightly above the Eurozone average due to domestic pressures such as strong wage growth and rising housing costs.
Unemployment is anticipated to rise marginally, from 3.7% in 2024 to 3.9% in 2025 and 4.0% in 2026, as labor force growth slightly outpaces job creation. The labor market remains relatively tight, with vacancies still exceeding the number of unemployed individuals in many sectors.
The Dutch government deficit is projected to widen, reaching 2.1% of GDP in 2025 and 2.7% in 2026, driven by tax relief measures, increased public spending, and structural reforms. Public debt is also expected to rise, from 45.0% of GDP in 2025 to 47.8% in 2026.
While the Netherlands continues to demonstrate economic resilience and a strong commitment to innovation, trade, and sustainability, its political landscape has become more unsettled. In mid-2025, the Dutch government collapsed over disagreements on immigration policy, leading to a caretaker administration and new elections scheduled for late October. Despite this political uncertainty, the Netherlands maintains a robust institutional framework, a strong rule of law, and deep integration with international institutions such as the EU and NATO—factors that continue to underpin its role in global trade and diplomacy.
For more detailed information on the political and economic landscape of the country, please visit the U.S. Department of State’s Countries & Areas website by clicking the link provided.